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Chapter 1 Statement of Operations Problem

Produce a Statement of Operations for Goodcare Hospital on December 31, 2023 utilizing the following data.

  • Supplies expense 2230 Nonoperating income 90 Miscellaneous expense 400 Patient Services Revenue 11500 Interest expense 1000 Depreciation expense 2100 Other operating revenue 580 Salaries & Wages expense 2400
  • Other professional services revenue 3400
  • Deductions from patient services revenue 6600

After examining Goodcare Hospital, evaluate their operating income.

  • Why do we want to isolate this number? How are they performing? What makes their Excess of Revenues over Expenses figure look better than it is based on operations?
  • If Net Assets is $330 at 12-31-22, construct a Statement of Net Assets for 12-31-23.
  • Goodcare Hospital contains the following list of various accounts. Construct a balance sheet in good form for the end of the fiscal year 12/31/23. Inventory $2000 Accrued Salaries & Wages Payable 840 Prepaid Insurance 110 Cash 810 Plant Assets 4000 Prepaid Interest 60 Accounts Receivable 1890 Bonds Payable (Due 2028) 3150 Accounts Payable 420 Short-term Investments 90 Accumulated Depreciation 1800 Deferred Revenue 350 Notes Payable 530 Other long-term liabilities 700

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